In June, Bulgaria’s overall business climate deteriorated, with declines reported in industry and construction, while retail trade and services registered improvements, according to the latest National Statistical Institute (NSI) survey.
The composite business climate indicator fell by 1.3 points to 16.1%, down from 17.4% in May, remaining below the long-term average level of 21.4%. The NSI data shows a mixed picture across sectors, but with a general weakening in key parts of the economy.
In industry, the business climate indicator dropped by 2.3 points to 16.1% from 18.4% a month earlier. This was driven by more cautious assessments of current business conditions and less optimistic expectations for production activity over the next three months.
Industrial managers continue to identify the uncertain economic environment as the main constraint, cited by 46.9% of respondents, followed by labor shortages at 32.4%. Despite the weaker outlook, most industry leaders expect selling prices to remain stable over the coming three months.
Construction recorded the sharpest decline, with its business climate indicator falling by 4.9 points to 11.1% from 16.0% in May. The downturn reflects more reserved assessments of business conditions and negative expectations for construction activity in the near term.
